PBR Petroleo Brasileiro ADR

By Oliver Griffin

SBM Offshore NV (SBMO.AE) said Thursday that it "strongly disagrees" with a Brazilian court order obliging Petroleo Brasileiro S/A (PBR), Brazil's majority state-owned petroleum company, to withhold payments due to SBM.

Brazil's federal prosecutor filed a lawsuit against the Dutch offshore oil-and-gas services company in December under the country's anti-corruption laws. The prosecutor asked the court to impose a provisional measure to secure payment for damages that could potentially be awarded.

The Dutch company said that, from what it understands, the court on Wednesday ordered Petrobras to start withholding a percentage of the monthly payments it owes to SBM companies under certain charter contracts in escrow as collateral.

The interim decision makes reference to the fact that SBM is based overseas so the recovery of damages may depend on international legal cooperation, SBM said.

SBM said that it strongly disagrees with the move and is seeking clarification and taking all appropriate measures to defend its interests.

Before taking a decision on the exact amount to be withheld, the company said that the judge is requesting more information, including financial details, from Petrobras and SBM, the Dutch company said.

Write to Oliver Griffin at oliver.griffin@dowjones.com

(END) Dow Jones Newswires

July 05, 2018 02:02 ET (06:02 GMT)

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